If your holiday party includes alcohol, make sure your liquor liability is part of your plans.

Holiday office parties are a popular way to celebrate the season and show your appreciation to your staff.  There are many ways to celebrate and if you chose to host a holiday party, it’s important to know your liabilities if you want to include alcohol in your celebration.

Liability coverage

If a guest of your party is injured or injures someone else in an alcohol-related accident as a result of your party, you can be held responsible.  Workers compensation is probably not going to cover you if an employee is injured during a party, whether or not alcohol is involved, but liability insurance may cover the injury.  It’s critical to ensure that your comprehensive general liability policy includes liquor liability coverage, especially third-party coverage.  If not, you will need to purchase special event coverage or a separate liquor liability policy before hosting your holiday office party.

Communicate with staff

Employees need to know long before the first drink is poured that this isn’t just a party.  It’s a company-sponsored event and they and their guests are expected to behave responsibly, much as they’re expected to behave in the workplace. Consider sending a memo out before the event and letting staff know that what happens at the party can affect their standing with the company.

Alleviate your risk

How you serve the alcohol can have a significant impact on your risk of something undesirable happening.   Consider implementing the following suggestions to reduce your risk of having to use your liability insurance.

• Host your party at a restaurant or event facility, instead of a home or office.
• Offer food and non-alcoholic beverages.
• Limit the number of drinks allowed per person.
• Plan activities to entertain guests that do not involve alcohol.
• Stop serving alcohol at least one hour before the end of the event.
• Do not serve guests who are visibly intoxicated.
• Arrange transportation for people that should not drive.

Contact your Hood Hargett agent and we’ll be happy to review your liquor liability coverage before your holiday event.